The Neuland Agricultural Cooperative (Cooperativa Agricola de Neuland), located in Colony Neuland of the Paraguayan Chaco, was officially organized on 1 June 1949, but had been functioning since August 1947 as a branch office of the Fernheim Cooperative. Its membership in the 1950s was 596 and it was based upon Paraguayan law No. 13,635 of 1942. Founded upon the advice of the colony and Mennonite Central Committee (MCC) leaders, its objectives were to facilitate adequate distribution of funds made available by the MCC; to handle all buying of colony necessities and all sale of produce; and to establish small industries which would meet the needs of the immigrants. Its only capital during the first year was maintenance and loan funds made available by Mennonite Central Committee. Its shares in the mid-1950s were valued at 25 guaranies payable in cash upon purchase. The turnover of the first seven months in 1949 (June-December) was 381,458 guaranies, and profits were used to expand the co-operative facilities or were paid to the members in the form of shares. The president of the co-operative was responsible to the colony administration (Amt) in all matters and acts as the financial arm of the colony. A shortage of capital, lack of proper markets and transportation facilities, and the instability of the Paraguayan currency were the chief difficulties for the colony. Nevertheless, the cooperative did much to help the immigrants over the first difficult years of pioneering and guarded them against exploitation by outsiders.